A recurring deposit can be opened with the Post Office or a bank. The sum of principal and interest earned over the investment period is the RD maturity amount. Interest is compounded every three months. Each month, the savings must be deposited in the account.
Recurring deposit at Swiss Post interest rate
A monthly deposit should be at least Rs 100, with multiples of Rs. 10 as a minimum, according to the India Post website. As of April 1, 2020, the applicable interest rate is 5.8% per annum, compounded quarterly. After 5 years (60 monthly deposits) from the date of opening, the account matures.
Premature withdrawal
After three years from the date the account was opened, an RD account can be closed early by submitting a required application form at the local post office. If the account is closed prematurely, even one day before maturity, the PO savings account interest rate will apply. It is not permitted to close an account before the expiry of the period for which the installments have been paid.
R&D banks
According to the SBI website, the RD interest rate is applicable to term deposits for the public and the elderly.
According to the HDFC Bank website, “You can start with an investment of 1,000 rupees and then in multiples of 100 rupees. The maximum you can invest in a recurring deposit account is 1,99,99,900 rupees per month .” Interest rates vary from 2.90 to 5.50%. ICICI Bank offers an interest rate on recurring deposits between 3.50 and 5.60% over different terms.
Interest rate HDFC Bank RD
SBI RD interest rate
Interest rate ICICI Bank RD
Premature withdrawal
According to the HDFC Bank website, “A recurring deposit is like a fixed deposit. Once the RD amount has been deposited, it cannot be withdrawn before maturity. Partial withdrawals from the account are not allowed .”
According to the ICICI Bank website, “In the event of premature/partial closure of your FD/RD, interest will be paid at the applicable interest rate for the period the deposit has been held with the Bank, subject to subject to the applicable penal rates.”
“Interest paid on premature withdrawal of term deposits may be lower than the contractual rate, in accordance with the rule applicable to the date of premature payment,” according to the SBI website.
